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SPECIAL REPORT from TheFinancialFreedomFoundation.org (If you find this reort interesting! lease For"ard it to a Friend#
$o" to Achie%e Total Financial Freedom& 'ulti)illionaires Are *ot Any Smarter Than +ou! They ,ust -no" $o" To Play The oney ame/ This Reort Re%eals E0ACTL+ 1hat +ou *eed To 2o To 3uild 1ealth ,oining Our 'astermind rou/ Re%eals E0ACTL+ 1ho to 4se For Each Comonent
According to the World Institute for Development Economics research, of United Nations University, 2% of adults in the orld on !"% of the orld#s ealth$ What does this mean It means that the 2% &no something that the other '(% of people don#t &no, and they ta&e action on that &noledge$ )hey &no ho to correctly apply the principles of ealth creation$ If you ere to ta&e their ealth aay from them, they ould li&ely regain it fairly *uic&ly$ And if they ere to tell an average person hat they ere doing and the e+pected results, the average person ould proaly say that it sounds too good to e true and ould simply al& aaydreaming of ealth and never achieving it$ It is simply a matter of understanding the principles and ta&ing action$ )he main levers of ealth creation are ar5itrage , le%erage , and comounding $ )he .1 most fundamental principle of ealth creation is to on or control assets that generate income$ )hese assets might e rental properties, usinesses, oil ells, patents, franchises, uildings, stoc&s, onds, mutual funds, etc$ )he amount of income generated y the asset depends upon the si/e of the asset and the rate of return$ )he typical annual rate of return on traditional assets is anyhere from 1$!% to 1!% per year$ 0ost traditional assets also re*uire your time to manage them$ oever, here#s hat most people don#t &noShhh6 Come closer6 $ere7s a little secret6
)here are nontraditional assets that can sustainaly generate high douledigit annual returns, ithout re*uiring your time to manage them3 )hese assets are uni*ue in that they ma&e ma+imum use of aritrage and compounding, and the returns really s&yroc&et hen you add in leverage, as you shall see$ 4ut first, the asics5
The La5or ame %s. the oney ame 0ost people &no ho to play the 6laor game,7 ut never really learned ho to play the 6money game$7 0ost people trade their laor and their time for money, y ecoming employees$ )his is called 6active income,7 ecause it re*uires daily action to generate the income$ )his strategy constricts their Copyright ©2014 TheFinancialFreedomFoundation.org All Rights Reserved
$a%ing a '8o5/ is the ris9iest tye of income.
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earning potential, ecause there is a limited amount of time in each day 8it is impossile to or& more than 29 hours in a day:$ When the 6active income7 is insufficient to meet their needs, they use det, in the form of credit cards and home e*uity loans, to ma&e up the difference$ )his is called 6Consumer 2e5t. 7 )his is a ad type of det and results in ondage to creditors and even an&ruptcy$
Acti%e income is the ris9iest tye of income! 5ecause it can sto at any time due to causes "hich are outside of your control , such as illness, accidents, or involuntary unemployment 8;ou#re
laims, over 9"",""" s&illed, talented employees hear those to dreadful ords every ee&$
In the <=>?! oldman Sachs generated o%er @= of its net re%enue from rorietary trading and in%esting! comared to only >B from core in%estment 5an9ing.
)he ealthy, on the other hand, choose 6alternative7 investments that have high douledigit returns3 )he ealthy ma+imi/e the effect of compounding$ )he ealthy use leverage$ )hat is hy, instead of aiting ?" years to see results, they start to see ealth creation and massive passive income immediately3 )heir actions perpetually &eep them in the category of the 6aves$7 )he only separator eteen the 6aves7 and the 6ave Nots7 is a series of secific actions $ )he purpose of )he
Reca& aving a =4 is the ris&iest source of income$ Wealthy people are not employees$ Wealthy people ma&e money their employee$ They don7t "or9 for money! money "or9s for them: If you ant to transition from the category of 6ave Nots7 to the category of 6aves7, it simply ta&es a series of specific actions, hich actions you can learn at )he
(For details! go to TheFinancialFreedomFoundation.org;details# Copyright ©2014 TheFinancialFreedomFoundation.org All Rights Reserved
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etting Started If you already have a 6nest egg7 of B1""C availale to or& for you, then you can get started right aay$ If you have B1"C availale to or& for you, then you can get started, too$ 4ut hat if you don#t even have that ;ou can get started, too3 What most people dont fully grasp is that ealthy people implement the principle of leverage y using ther eople#s 0oney 80: and ma&e )A) money their employee, too3
1ealthy eole ma9e Other Peoles oney their emloyee:
Le%erage in the form of OP )he leaste+pensive, loestris& form of 0 that e have come across is using nonpersonally guaranteed, unsecured usiness lines of credit$ •
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Nonersonally Fuaranteed means that you do not act as the personal guarantor$ nly the corporation you#ll form and on is liale for repayment of the det, not you personally 8sometimes, you have to start out as the personal guarantor, ut remove yourself as a guarantor once you have estalished a repayment history ith the lender:$ Unsecured means that you don#t have to pledge a car, house, your first orn, or anything else as collateral that ill e sei/ed if the det is unpaid$ 4usiness means that the orroer is the corporation that you create and on, not you personally$ It does not sho up anyhere on your personal credit profile, only on your usiness# credit profile$ Gines of >redit means it can e either5 1$ A standard usiness credit card 2$ A traditional usiness loan, ith a fi+ed interest rate and a fi+ed numer of years to repay the loan 8large corporations issue onds ith these characteristics: ?$ A fle+ile usiness line of credit here you can access the money y riting a chec& and must egin paying interest only hen you dra don on the line of credit
)his &ind of det is called 6In%estment 2e5t. 7 )his is a good type of det$ @ince it is usiness credit, it does not report on your personal credit profile$ 0ost importantly, you can use investment det to generate investment income or 6passive income$7 A credit profile is an intangile asset$ At )he
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aDimiing Ar5itrage Comounding using 'anaged Accounts/ )he official definition of aritrage is 6the simultaneous purchase and sale of an asset or similar assets, in order to profit from a difference in the price$7 )hat is 6pure7 aritrage$ A common instance of it is hen a real estate investor has a contract to uy a house for B2"",""" and a contract to sell the house at B22!,""", and closes on oth contracts at the same time5 a simultaneous closing$ )hat is a nice deal, ut the investor had to find the seller and the uyer and negotiate the price ith each of them efore his contracts e+pired$ )his resulting income is not 6passive7 income, ecause of all the time re*uired to put the deal together$ And there is no compounding effect on his returns$ If he ants to reinvest his profits, he has to search for another property, uyer, and seller$ )hat is the nature of his selfcreated 6Ho$7 Near Aritrage or @peculative Aritrage occurs hen there is a spread eteen your cost of capital and your rate of return$ In the case of commercial real estate, your spread is the difference eteen your loan constant and the cap rate$ ;our annual orroing costs may e !% and your annual rate of return may e (%, giving you a spread of ?%, hich ecomes your 6passive7 income 8assuming you hire someone to manage the property for you:$
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EGuity Areciation •
• •
•
0anaged Accounts 8Wealth >reation @trategy: Froth @toc&s @ingle
'Passi%e/ Income
0anaged Accounts 8Income @trategy: Income @toc&s 4onds >ommercial E @elf @torage E 4illoards 0ortgage Notes il Wells Foal5 assive income K Giving e+penses 1ealthy •
'Acti%e/ Income • •
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=o Income
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Foal5 4uild appreciation e*uity to turn into cashflo Rich
Foal5
In our e+perience, 0anaged Accounts are the est 6passive7 ealth creation vehicles, even etter than 6uy and hold7 stoc&s, real estate and oil ells$ ere#s hy5 0anaged Accounts consist of to parts5 1: an account ith a fullservice ro&erage firm, li&e 0errill Gynch, U4@, or any other ro&erage firm, and 2: hiring a professional trader to ma&e trade recommendations to e e+ecuted in your ro&erage account$ ;ou hand pic& your professional traders and give them instruction to send over their live trades$ ;our ro&er receives the trading signals from the professional trader and has the 6trading des&7 at the ro&erage firm e+ecute the trades in your account on your ehalf$ ;ou personally do not have to come up ith the trades nor manually e+ecute them$ )he process is automated for you, ma&ing this a truly 6passive7 investment$ )he si/e of the 6spread7 in your aritrage is the difference eteen your cost of capital and the rate of return any ha%e generated on your account$ 6@preads7 of ?M% or etter are not uncommon, trac9 records of especially hen using leverage$ 4est of all, hoever, is that hen the profits are generating left in the account to e reinvested, the returns ecome compounded and the gro"th rate in your account 5ecomes eDonential 3 trile)digit annual
returns! esecially @avvy investors open up such 0anaged Accounts and engage orld class, in do"n mar9ets: professional traders, ith very profitale strategies and lengthy trac& records, to trade these accounts for them$ )he professional traders may speciali/e in stoc&s, options, commodity futures, foreign currency e+change 8fore+:, e+change traded funds 8E)
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In e+change for their services, the professional traders either receive an annual fee or &eep a percentage of the profits the generate on your account$ It is a inin situation$ ;ou have complete control over your 0anaged Accounts and complete transparency5 you can see each and every trade, efore it is placed$ )hese accounts are on/iproof3 ;ou see the results of each and every trade, in real time3 ;ou are the only one ith These Accounts are authority to place money into or ithdra money outof the account$ ;ou simply give the professional traders a 6Getter of Direction7 hich only Poni) Proof: permits the trader to recommend trades for your on ro&er to e+ecute on your on account, implementing strategies that generate high douledigit +ou see the actual annual returns3
results of each and e%ery trade! in real time:
4ecause the ealthy put their financial intelligence to or&, they do not need to go to a 6Ho7 each day to generate this 6passive7 income$ )his strategy has unlimited earning potential, ecause their employee 8money: or&s 29 hours a day, days a ee&, ithout vacation or sic& days$ And the profits can easily e reinvested, causing a compounding of the return$ )his is huge3
The 3irth of the Concet o did e come up ith our investment model While getting our 04As at )he Wharton @chool, e learned to thin& strategically and to focus on ma+imi/ing efficiency$ 0ost usiness models are comple+ and inefficient$ )hat is hy their returns are so lo$ )he more profitale usiness models re*uire some uiltin arriers to entry so that other people don#t copy hat you do, therey increasing competition and driving don your profit margins$ After going ac& to the draing oard several times, e finally drafted a usiness model that as so efficient, that it ecame more of an investment model than a usiness model, ecause it did not re*uire the sale of any product or services, no capital e+penditures on property, plants, or e*uipment, and no employees$ ere are its @)ENF)@5 1$ Scala5ility can add more money at any time and get the same return$ In traditional investments, such as ith real estate, if you ant to invest another B!",""", you can#t Hust add that to a property that you already on$ Instead, you have to loo& for another uilding to uy, and that re*uires time, money, and headache$ 2$ Transarency you can see each and every trade as they are e+ecuted in your 0anaged Accounts, and you see the results, ith full visiility, in real time$ )hat ma&es our approach on/iproof$ In traditional investments, such as hen you invest in a fund or uy a share of onership in a company, you hand your money to someone else and only see hat they report to you on a monthly or *uarterly asis$ )hey can use fancy accounting to hide negative results$ oever, ith our approach, you get the truth, the full truth, and nothing ut the truth$ ?$ Retains control you only give the professional trader limited authority to made trade recommendation for your ro&er to e+ecute on your ehalf$ ;ou can fire the trader at any time and replace them ith someone else, if they are not performing up to your Copyright ©2014 TheFinancialFreedomFoundation.org All Rights Reserved
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e+pectations$ In traditional investments, hen you give your money to someone else, you give them control over your money, and hope they give it ac& to you hen you as& for it$ 9$ LiGuidity you can ithdra funds from your investment account at your leisure, y sending an email to your ro&er instructing them to do a ire transfer to your chec&ing account$ )he funds arrive in your chec&ing account usually ithin 29 hours, or maye 9( hours if they have to close out some positions$ ;ou don#t have to put any real estate on the mar&et and ait for several months, nor ait until a fund#s redemption period$ !$ Recurring income O hen you have professional trader that perform, they &eep on generating income for you$ 0ost usinesses sell a product to customer A, and then have to find a customer 4 in order to sell more product$ >onstantly finding ne customers is e+pensive$ >onstantly finding ne stoc&s to uy or houses to uy is e+pensive, too$ M$ Allo"s for comounding you can reinvest your profits into the same account and ma&e the same return$ )his creates e+ponential groth, hich is the true &ey to ealth$ ;ou cannot reinvest rental income into the same rental property and get the same return$ $ *o emloyees the closest thing to an employee is the professional trader and your ro&er$ )heir fees are nothing compared to having salaried employees$ Employees are most usinesses largest e+pense, and someone has to manage the employees$ ($ inimies lia5ility there is no threat of a lasuit from a tenant, an employee, a customer, a partner, or a competitor$ '$ inimies ris9 O once your account doules in value, if you remove your original investment principal, then that account is, in a sense, ris&free from that day forard$ ;ou can then use your original investment principal to open up another account ith a different professional trader, creating diversification$ 4y having several different traders that focus on different noncorrelated mar&ets and have different strategies, then you minimi/e the variance 8ris&: in your portfolio and have diversified aay specific ris& and mar&et ris&$ 1"$ Allo"s for ri%acy O you can on the account in your on name or through an GG> that you form$ None of it is pulic record, unli&e real estate here anyody can loo& up ho on P;Q property$ If the GG> is filed in Ne 0e+ico, even etter, ecause Ne 0e+ico protects privacy$ ere are its WEACNE@@E@5 1$ Caital Holume O the nature of the investment model cannot accommodate hundreds of millions of dollars$ It is not uncommon for professional traders to refuse to accept ne clients, so that they don#t start moving mar&ets ith their trades 8this has already happened to us once, efore e got our account opened:$ )his ma&es the model non attractive to institutional investors and large financial institutions, here even B1" million is a small investment$ Copyright ©2014 TheFinancialFreedomFoundation.org All Rights Reserved
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2$ *o 5arriers to entry O if anyody &nos aout this usiness model, they can easily duplicate it, especially if they &no the names of the professional traders$ )he ay to create a arrier to entry ould e to &eep the investment model a trade secret, y not telling anyone$ oever, having a arrier to entry is only a concern hen ne entrants into the mar&etplace ill drive don your profit margins$ As e mentioned, the traders ill stop accepting ne clients efore it starts affecting their personal returns or our returns$ A savvy usinessperson turns their ea&nesses into strengths$ ere is ho e did it$ When e find a trader ho meets our criterion, e ma&e sure that e get our account ith them first, efore e give their name out to anyone else$ )hat protects us against the first ea&ness$ eali/ing, hoever, that this investment model is ideal for people ith less than B1 million to invest, e determined to turn the second ea&ness on its head and actually sho people ho to replicate our investment model 8that is hy you#re reading this report:$ While this is partially due to the fact that e are altruistic, there is also something in it for usWe see a dire need for increased involvement ith organi/ations that focus on relieving human suffering, such as feeding the hungry, clothing the na&ed, lierating the captive, and administering relief to the sic& and afflicted$ We feel a great amount of satisfaction in dedicating some of our time, talents, and resources to addressing these very issues, ut our personal reach is very limited$ )he income gap eteen the rich and the poor is groing and it is causing increasing social distress$ )hose ho &no ho to play the money game aren#t sharing, and those ho do not &no ho to play the money game aren#t learning$ It is very difficult for us to change the mindset of ealthy people ho are set in their ays$ )herefore, e ill create nely ealthy people ho already share in our mindset$ )here are over 2M$! million people ho are either unemployed or underemployed$ If they cannot &eep a roof over their heads, they and their children end up living under a ridge, and in some cities the underpasses are already getting croded$ )here are ?'$1 million people officially living in poverty, in the U$@$ alone$ In many U$@$ cities, unemployment rates are already aove ?"%$ In other countries, such situations result in violent uprisings$
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performance of nonprofits, ut they do not have the funds to pay competitive ages to people coming from the private sector$ With that said, if you ere to approach a nonprofit and offer to or& for free, and perhaps even donate money to them on an annual asis, they ould asolutely love you$ ;ou could change that organi/ation forever, and e+pand their reach ith regards to the numer of people that they help$ ;ou can impact the lives of people in ays that e couldn#t thin& of, and in places here e are not personally focusing$ We reali/e that e cannot dictate to you here and ho you go aout your philanthropic efforts, ut ith this approach you on hat you do, and you ill choose something that you are passionate aout$ )ime is more valuale than money$ )alents are more valuale than time$ We ant to or& ith people ho are illing to contriute all three$ )han&s to the speed of the internet, e can remove arriers to entry very *uic&ly, for the people ho have the right &ind of heart and are illing to ta&e action$ @ome notale e+amples of social entrepreneurship in action5 Dennis evoto ho founded @tar of ope 0ission serving homeless people in ouston, )P$ )hey regularly provide over !"",""" meals to the hungry, (",""" articles of clothing, 2(",""" eds for the homeless, and M,""" medical appointments$ •
Dr$ William 0agee L Cathy 0agee, ho egan doing facial correction surgeries for a fe poor children ac& in 1'(2 and gre the organi/ation into peration @mile, providing free surgeries to over 2"",""" children in more than !" countries$ •
on L Gynette Geis, ho founded @top >hild )raffic&ing No, to fight child se+ traffic&ing in the U$@$ )hey are in !" cities and over 2"" educational campuses, ith thousands of people Hoining in to fight this horrendous form of modernday slavery$ •
University professor 0uhammad ;unus in India egan ma&ing small loans to impoverished entrepreneurs in India, leading to the creation of microcredit and microlending that is no ma&ing transformational changes in the lives of millions of people in communities all across the orld$ •
Walt atterman ho founded @un oer Energy International to ring solar panels to rural communities, including 1",""" people in 4urma$ •
Cen 0iller, et$ al$ ho founded Water for eople, drilling ells in impoverished communities to provide clean ater, ade*uate sanitation, and asic health services$ Every year they ring ater, sanitation, and hygiene to over 1"",""" ne people$ •
Each of these notale e+amples egan as a person ith an idea and a desire to impact the community for good$ )hey comined their private sector s&ills ith the time and resources of friends and other community memers, groing their efforts into organi/ations that impact the lives of hundreds of thousands of people annually$ If they could do it, hy can#t you ne of our favorite *uotes is5 “Dream no small dreams for they have no power to move the hearts of men.” O=ohann Wolfgang van Foethe Copyright ©2014 TheFinancialFreedomFoundation.org All Rights Reserved
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No, e reali/e that all of this philanthropic involvement is predicated upon the assumption of you having enough passive income to pay your ills, so that you no longer have to trade your time for money$ )hat income depends upon the performance of the professional traders$
2o such traders eDist! or are "e 8ust ma9ing this u Well, here is a snapshot of some of the professional traders5 Professional Trader J>& 4egan trading 1'(9$ e focuses on commodity futures and options on stoc&s L e+change traded funds 8E)
the ice5erg. Our list includes se%eral other traders "ith eGually stellar erformance.
Professional Trader J<& 4egan trading in 1'(?$ e focuses on foreign currencies 8fore+:$ e generated noncompounded returns of ("% for the past ? consecutive years$ is trades follo the longterm trends, he typically holds trades for 2 months, and it ta&es aout 9 months of time for a ne account to get fully up to speed$
Professional Trader J?& 4egan trading in 1'(?$ e focuses on fore+$ Fenerated noncompounded returns of over 1""% for the past ? consecutive years ith a 9 year average of over 1(!%$ )his trader follos the directional trend of the mar&et$ )his trader typically holds trades for 1 month, and it ta&es aout ? months of time for a ne account to get fully up to speed$ Professional Trader JK& 4egan trading fore+ in 1''M, intraday trading only$ e designs self adHusting indicators that adHust to changing mar&et conditions$ @ince 2""9 he has generated an average annual, noncompounded return of !%$ )his strategy places 2 or ? trades per day, alloing a ne account to get fully up to speed ithin the 1st month$
)his is Hust the tip of the iceerg$ We#ve found many more traders that meet our criterion$
The Po"er of Comounding& The Rule of B< Alert Einstein, argualy one of the greatest scientific minds to have ever lived, is said to have descried compounding interest as 6the most poerful force in the universe$7 >ompounding occurs hen you reinvest your profits or gains, resulting in e+ponential groth$ )he ule of 2 is an easy ay to estimate ho long it ta&es for an investment account to doule in value, hen all monthly profits are reinvested and therefore, compounded monthly$ If the noncompounded rate of return is 12% annually, then it ta&es aout M years for the account value to doule 812 + M R 2:$ If the noncompounded returns are ?M% annually, then it ta&es aout 2 years for the account value to doule 8?M + 2 R 2:$ o does this apply to you As an illustrative e+ample, suppose you start ith a onetime investment of B1""C and find a professional trader ho generates a noncompounded Annual Copyright ©2014 TheFinancialFreedomFoundation.org All Rights Reserved
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ercentage ate of eturn 8A: of ?M% per year or etter$ If you ere to reinvest all of your profits every month, hich causes compounding of the return, your account ould more than doule in value every 2 years5
Year
2
Start
x2 $100K $200K
4
6
x2 $400K
x2 $800K
8 x2 $1.6M
10 x2 $3.2M
The Exponential Effect of Compounding Return !tarting amount $100%000
"#R Year Ending "mount 36% 36% 36% 36% 36% 36% 36% 36% 36% 36%
1 2 3 4 5 6 7 8 9
$142,576 $203,279 $289,828 $413,225 $589,160 $840,002 $1,197,642 $1,707,551 $2,434,559
10 $&%4'1%0(( *Initial investment of $100k earning 36% non-compounded return per year, compounded monthly, for 10 years !ote" #his tale is for illustration purposes only
As you can see from the tales aove, )he ule of 2 is an appro+imation for douling your money every other year 8the second tale shos e+act douling:$ oever, y comparing the to tales, you#ll notice that the end result is practically the same$ 4y using a critical mass of starting capital and y ma+imi/ing the effect of the poer of compounding, you could potentially create a net orth of over B?,""",""" in Hust 1" years33 )hat means you could potentially ecome a multimillionaire ithin a decade$ No, this is an illustrative e+ample only$ o this plays out in reality may e etter or it may e orse$ •
•
•
•
@ome of the traders generate tripledigit, noncompounded annual returns, not Hust ?M% per year, and this ould positively impact your overall returns$ Unless you have your money in a oth IA, then you ill have to pay ta+es on your annual gains, hich ould negatively impact your overall annual returns$ If you use 0 for your initial investment capital, then you ould have to repay that line of credit, plus the interest, hich ould negatively impact returns in the first fe years$ ;ou may choose to not reinvest all of the profits and instead ta&e some out as personal income, hich ould negatively impact your overall returns$
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•
;ou may have a couple of accounts for different strategies, some for passive income purposes and a couple of accounts for longterm ealth creation$
$ere is the 9ey oint& the amount of passive income you generate is directly related to 1: your rate of return, and 2: the si/e of the 6nest egg7 of capital you start ith or 6investment det7 that you can otain and invest$
)his method of generating passive income results in5 1$ aving discretionary time for family and hoies 2$ aving discretionary income to payoff creditors
It all deends on your amount of starting caital! and the comounded rate of return.
?$ aving more than enough income to meet your needs 9$ aving e+tra time to dedicate to community involvement !$ aving income left over to contriute to the charitale and philanthropic causes you deem most orthy, such as feeding the hungry, clothing the na&ed, and administering relief to the sic& and afflicted 8the est method is anonymous giving, although it can e difficult at times to remain anonymous:
The 3ig Picture& $o" it All Fits Together in a Hisual odel )ealth Creation !trateg*
Managed Account
100% o" $ont&' (ro"t# ren)e#ted nto 'our Managed Account to ra(d&' ncrea#e te #*e o" 'our account troug co$(oundng return#
! T r r o a d " t # n g
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4elo is an analysis of the 1ealth Creation Strategy , oth ith and ithout ta+es, depending on if the managed account has ta+ advantaged groth y eing in an IA or not$ ;ou#ll notice that a ?M% noncompounded return is the e*uivalent of a 92$!% compounded return$ Numers in 5lue are the assumptions 8if you do not li&e detailed financial analysis, Hust s&ip this tale:$ )ealth Creation !trateg* +,ithout taxe+""ect )e Tax ate 0% -a##ue# account # n an A/ Yr 1 2 & 4 $289,364 /eginning /alance $100%000 $142,500 $203,063 !ercent eturn +Compounded 42.5% 42.5% 42.5% 42.5% Tradng !ro"t# $42,500 $60,563 $86,302 $122,980 Taxe# $0 $0 $0 $0 A)a&a&e "or en)e#tent $42,500 $60,563 $86,302 $122,980 !ercent en)e#ted 100% 100% 100% 100% Aount en)e#ted $42,500 $60,563 $86,302 $122,980 Ending /alance $142%.00 $20&%06& $28(%&64 $412%&44
. $412,344 42.5% $175,246 $0 $175,246 100% $175,246 $.8'%.(0
6 $587,590 42.5% $249,726 $0 $249,726 100% $249,726 $8&'%&16
' $837,316 42.5% $355,859 $0 $355,859 100% $355,859 $1%1(&%1'.
8 $1,193,175 42.5% $507,099 $0 $507,099 100% $507,099 $1%'00%2'4
( $1,700,274 42.5% $722,616 $0 $722,616 100% $722,616 $2%422%8(0
10 $2,422,890 42.5% $1,029,728 $0 $1,029,728 100% $1,029,728 $&%4.2%61(
)ealth Creation !trateg* +,ith taxe+""ect)e Tax ate 20% Yr 1 2 & /eginning /alance $100%000 $134,000 $179,560 !ercent eturn +Compounded 42.5% 42.5% 42.5% Tradng !ro"t# $42,500 $56,950 $76,313 Taxe# -$8,500/ -$11,390/ -$15,263/ A)a&a&e "or en)e#tent $34,000 $45,560 $61,050 !ercent en)e#ted 100% 100% 100% Aount en)e#ted $34,000 $45,560 $61,050 Ending /alance $1&4%000 $1'(%.60 $240%610
. $322,418 42.5% $137,028 -$27,406/ $109,622 100% $109,622 $4&2%040
6 $432,040 42.5% $183,617 -$36,723/ $146,894 100% $146,894 $.'8%(&4
' $578,934 42.5% $246,047 -$49,209/ $196,837 100% $196,837 $''.%''1
8 $775,771 42.5% $329,703 -$65,941/ $263,762 100% $263,762 $1%0&(%.&&
( $1,039,533 42.5% $441,802 -$88,360/ $353,441 100% $353,441 $1%&(2%('.
10 $1,392,975 42.5% $592,014 -$118,403/ $473,611 100% $473,611 $1%866%.86
4 $240,610 42.5% $102,259 -$20,452/ $81,808 100% $81,808 $&22%418
With the Wealth >reation @trategy, you#ve created an annual passive income of over B10 per year y starting ith Hust B1""C and having it compound in your account for 1" years$
0ore specifically, here is ho leverage, aritrage, and compounding can go to or& for you5 if you go the route of getting a corporation ith B2!",""" usiness line of credit, and you dra don on B2"",""" of that line of credit, and place it in accounts ith 9 different traders, you could have B!",""" per account$ )rader .1 may focus only on Agricultural
Page 19
still achieve an average of at least ?M% return in your diversified portfolio$ When compounded, a ?M% return on B2""C is an income of @M!=== er year $ )his passive income stream can e put in place in as little as ? or 9 months ith minimal up front capital investment3 )hat is leverage, aritrage, and compounding going to or& for you3 Another ay to phrase this is that for every B2""C that isn#t or&ing for you in the investment model, it#s another B?9" per day that you#re not receiving 8ased on a regular or& ee&:$ 4ased on an ( hour or& day, that#s aout B92$!" per hour you are Hust asting, due to inaction$ Inaction is e+pensive$
This sounds too good to 5e true When sharing our investment model ith family and friends, e fre*uently heard that it sounded too good to e true, ecause it dramatically outperforms any of their traditional investment methods$ @uperior performance is not an accident$ It is more difficult to design a roc&et ship than it is to design a icycle$ 4icycles ma+ out at speeds around ?! miles per hour$ oc&et ships circle the earth at ?!,""" miles per hour$ When designing the model our e+plicit goal as to outperform traditional investment results$ We invited our family and friends to shoot holes in the strategy and they couldn#t$ I guess that means the strategy is ullet proof, if applied correctly$ In the end, the only valid response as5 6it is good, and it is true-the proof is in the eating$7
If it is so easy! "hy isn7t e%ery5ody doing it We &ept our investment model as simple as possile, ecause comple+ity creates inefficiency$ It is human nature to ma&e things unnecessarily comple+ 8ho many pages is the ealth >are 4ill or the I@ ta+ code:$ )he strategy may seem ovious to you no, ut it asn#t ovious to you efore you read this report or else you ould already e doing it$ )here is a ide gap eteen &noing and doing$ opefully, e#ve e+plained the concepts ell enough that anyone can feel comfortale in applying them$ oever, e do reali/e that some people cannot escape traditional investment mindsets or cannot stop thin&ing li&e employees, feeling oliged to 6earn7 their money y trading their time for money$ Fod less them$ We enHoy the arm grandfatherly smile hen e al& into Walmart, ut inardly hope that person feels li&e they are ma&ing the highest and est use of their time, talents and resources y standing there and smiling at us$
1hy doesn7t 1all Street tal9 a5out this oortunity It#s simple5 0anaged accounts are not 6securities7$ ommodity ommodity <)> and the N
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Learn more a5out "hat you7%e 5een missing: We invite you to see hat you#ve een missing$ )o create e+cess cash flo, you must . 1 ma+imi/e income and . 2 minimi/e e+penses$ )o ma+imi/e income, you can apply these financial concepts ith professional traders that you find on your on, or you can Hoin our redit 2$ Improve your >redit @core ?$ Negotiate your >onsumer Det don to 1" cents on the dollar ithin 12 months )hese ?rd party, professional service providers do charge a fee for their services, as this is their profession$ oever, e do not charge you anything for their services$
1ill this "or9 for me )hese strategies even or& for people ho have ruined their personal credit through foreclosure or even an&ruptcy3 We have found ays to or& around any road loc&, ostacle or e+cuse, e+cept lac& of discipline and inaction$ ur goal at )he
+our *eDt Ste Learn ho" to 8oin our F? astermind rou at& TheFinancialFreedomFoundation.org;details (If you found this reort interesting! lease For"ard it to a Friend#
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LEAL 2ISCLAIER 5 WE AE N) N D WE WAN) ) 4E IAG ADJI@@, GANNE@, A))NE;@ >N@UG)AN)@$ )E IN<0A)IN >N)AINED IN )I@ E) I@ < IN<0A)INAG U@E@ NG; AND I@ N) ) 4E >N@)UED A@ INJE@)0EN) ADJI>E$ )I@ I@ N) A @GI>I)A)IN ) 4U; @EGG @E>UI)IE@$ WE 0ACE N FUAAN)EE@, EPGI>I) I0GI>I), WI) EFAD@ ) AN; GEFAG, )AP, IAG 0A))E N )I@ WE4@I)E IN )I@ E)$ INJE@)INF IN <EP, >00DI)IE@, AND @)>C@ >AIE@ EGE0EN)@ < I@C AND G@@ < IN>IAG I@ @@I4GE$ A@) E<0AN>E I@ N INDI>A) < U0EN) I@ N) INJE@)0EN) ADJI>E$ )I@ D>U0EN) I@ N) AN <I)A)IN ) 4U;$ INJE@)0EN) DE>I@IN@ @UGD N) 4E 4A@ED @GEG; N >A)@ AND FA@ E@EN)ED IN )I@ D>U0EN), A@ )E; JIDE NG; GI0I)ED IN<0A)IN$ GEA@E >E>C WI) A GI>EN@ED IAG ADJI@ 4E<E 0ACINF AN; INJE@)0EN) DE>I@IN@$ WE D N) END@E AN; )ADE, 0ACE), INJE@)0EN) 0E)D$
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